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IoD: Brexit may lead to hiring freeze

Published: July 7, 2016

Many companies are set to introduce a hiring freeze after the UK voted in favour of leaving the European Union, reveals a new poll.

A survey conducted by the Institute of Directors (IoD) concluded that 22 per cent of businesses are going to cease recruitment over the next few months, while one in five members are also looking at moving some of their current operations overseas.

Bank HSBC revealed it plans to relocate around 1,000 workers if the UK does withdraw from the EU, while Morgan Stanley has also confirmed it is considering moving some of its operations from London to Dublin or Frankfurt following Brexit.

Simon Walker, director general of the IoD, said: “Businesses will be busy working out how they are going to adapt and succeed after the referendum result. But we can’t sugar-coat this, many of our members are feeling anxious.

“A majority of business leaders think the vote for Brexit is bad for them, and, as a result, plans for investment and hiring are being put on hold or scaled back.”

The IoD poll also found five per cent of its members are considering reducing jobs following the leave campaign win.

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